Monday, May 7, 2012

20120507 1143 Global Market & Commodities Related News.

GLOBAL MARKETS-Risk assets weaken after French, Greek elections
TOKYO, May 7 (Reuters) - Risk assets fell broadly on Monday after elections in Greece and France fuelled questions about commitments from struggling euro zone economies to pursue austerity measures, widely seen by markets as crucial to resolving the bloc's debt crisis.    
"The election results may topple market perception that Europe was making progress in its debt woes," said Mitsuru Sahara, chief FX manager at Bank of Tokyo Mitsubishi-UFJ in Tokyo.  

COMMODITIES-US jobs report worsens selloff; NY oil below $100
NEW YORK, May 4 (Reuters) - A sell-off in commodities got little reprieve o n F riday, with oil prices plunging 4 percent to close below $100 a barrel for the first time since February, after disappointing U.S. jobs data sparked a broad flight from risk.
"We have broken through key technical levels here after a disappointing employment report and the PMI number from Europe which suggest that the recovery is stalling and could affect energy consumption," said Gene McGillian of Tradition Energy.

Day-to-day oil price stability a conundrum
--John Kemp is a Reuters market analyst. The views expressed are his own--
LONDON, May 4 (Reuters) - With just over a third of the year gone, 2012 has already proved tumultuous for the oil market, with front-month Brent futures trading as low as $108 per barrel and as high as $128.
There has been no lack of big news and surprises: civil war in Syria, the eruption of trouble in South Sudan, the rise and fall of tensions with Iran, endless production problems in the North Sea and speculation about the release of emergency stocks by the United States and its partners in the International Energy Agency (IEA).

Peak oil move over - now solve CO2
--Gerard Wynn is a Reuters market analyst. The views expressed are his own--
LONDON, May 3 (Reuters) - Trends in global economic growth and rising CO2 emissions rule out optimism that climate targets can be met, even while the world gets to grip with energy security.  
The continuing financial crisis and record high oil prices in 2008 haven't driven a low-carbon revolution which green lobbyists and agencies including the United Nations urged three years ago.  

Japan eyes guarantees for ships carrying Iran oil-Nikkei
TOKYO, May 7 (Reuters) - Japan is considering a new law to provide sovereign guarantees for its ships to allow them to continue importing Iranian crude oil after EU sanctions come into effect in July, the Nikkei business daily said.
The European Union has already prohibited European insurance coverage on hull and machinery for Iranian crude shipments, which has significantly limited Japan's lifting of Iranian crude from April.   The European Union in March, however, extended European insurance for oil spills on Iranian oil shipments until July 1, responding to calls for exemptions by Japan and South Korea.

Mideast fuel oil poised for tight summer
DUBAI, May 3 (Reuters) - The Middle East fuel oil market is braced for a tightening third quarter as soaring power generation demand is set to curb Saudi Arabia's exports and Western sanctions could deprive the market of Iranian supplies.
But although tighter supplies should push Gulf fuel oil premiums higher and could lift the Singapore ship fuel bunkering market, fears of regional fuel oil shortage are unfounded, traders and analysts in the Middle East and in Asia say.

OPEC output target rise not yet on agenda -Algeria
ALGIERS, May 6 (Reuters) - Raising the output target set by the Organization of the Petroleum Exporting Countries is not on OPEC's agenda for now but probably will be, Algerian Energy and Mines Minister Youcef Yousfi said on Sunday.
Asked about the prospect of increasing the target, Yousfi told state radio: "For the moment that is not the object of our discussions, but probably that will come at the OPEC level."

OIL-Oil extends slide after French, Greek polls
SEOUL, May 7 (Reuters) - Oil fell sharply on Monday, extending losses from the previous session, after elections in France and Greece raised concerns about their ability to carry out further austerity measures and renewed worries the euro zone debt crisis may resurface.
The bad news from Europe came after U.S. nonfarm hiring slowed for the second month in a row in April, which fueled a sell-off in oil markets on Friday.  

Shell, PetroChina JV Australia LNG faces big cost overrun-source
HONG KONG/PERTH, May 4 (Reuters) - The cost of Royal Dutch Shell  and PetroChina's  Australian joint venture LNG may rise as much as 50 percent from initial estimates, which could force the companies to delay development, a source close to the project said on Friday.
Arrow LNG is one of four on Australia's east coast that aim to pump gas from coal seams to export facilities. The estimated investment for all the projects is rising rapidly from the initial price tag of around $70 billion.

NATURAL GAS-US natgas futures end down on weather, profit-taking
NEW YORK, May 4 (Reuters) - U.S. natural gas futures ended lower o n Friday as moderate weather forecasts for next week and poor economic data triggered profit-taking after recent gains despite another supportive weekly inventory report.
"The market couldn't go any higher because we have some very bearish weather coming up, but I think we can hold the $2.20s, then make a run higher once we get some weather support," said Steve Mosley at SMC Advisory Services in Arkansas.

EURO COAL-ARA prices tick higher, China on sidelines
LONDON, May 4 (Reuters) - European coal prices crept higher by 25 cents a tonne on Friday as the market steadied after hitting two-year lows earlier in the week on weakening fundamentals.
"While exports of U.S. coal may make some economic sense we believe their impact will continue to be marginal," Deutsche Bank said in a research note on Friday.

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